H&M: Invest Securities still a seller
(CercleFinance.com) - The analyst believes that the group yesterday published Q3 results that came as a pleasant surprise.
However, the market was sceptical about the results (-3.4% yesterday) due to uncertainties surrounding the group's outlook for Q4 (disruptions in the value chain, increased supply costs, risks to product availability, etc.), Invest Securities says.
In this context, while the integration of stronger-than-expected Q3 figures leads it to significantly raise its 2020/21 NAV estimate (+18.8%) and, to a lesser extent, beyond, it also leads analysts to reiterate their sell rating on the stock, shaving a fraction off their target price to 137 Swedish kronor (versus 139 Swedish kronor and a current price of 179 Swedish kronor, +0.3%), they add.
Invest Securities also points out that relations between the group and China over Xianjiang hang over the group's outlook.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the market was sceptical about the results (-3.4% yesterday) due to uncertainties surrounding the group's outlook for Q4 (disruptions in the value chain, increased supply costs, risks to product availability, etc.), Invest Securities says.
In this context, while the integration of stronger-than-expected Q3 figures leads it to significantly raise its 2020/21 NAV estimate (+18.8%) and, to a lesser extent, beyond, it also leads analysts to reiterate their sell rating on the stock, shaving a fraction off their target price to 137 Swedish kronor (versus 139 Swedish kronor and a current price of 179 Swedish kronor, +0.3%), they add.
Invest Securities also points out that relations between the group and China over Xianjiang hang over the group's outlook.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.